Chemical Tankers Reap Fruits from Product Tanker Demand

The chemical tanker shipping market has been strongly supported by specialised trades and clean petroleum products (CPP) demand during the second quarter of the year. Although many newbuildings were delivered, the market has been able to absorb the extra tonnage, according to the latest edition of Drewry’s Chemical Forecaster.

Shipments out of South America and Southeast Asia have been firm but vessels carrying South American oils and fats (vegoil) cargoes fetched higher rates because of firm demand from the competing CPP market in the Atlantic. Palm oil shipments on the long-haul trade from Malaysia to Europe were up by 52. Higher-than expected Indonesian exports of palm oil in the second quarter due to the levy was delayed to July,  Drewry said.

The chemical-capable fleet is also engaged in the carriage of refined petroleum products. In 2014, the global seaborne trade in refined products amounted to 893 million tonnes, and in the last decade, this trade has grown at a faster rate than that of chemicals. This is largely due to the changing oil scenario in the US and the emergence of the US as a major exporter of refined products. As it provides employment for most of the ships with IMO status that form part of the chemical fleet, it is difficult to divorce the chemical markets from the products markets.

A number of smaller ships have left the fleet after the loss of IMO certificates, while of the 46 ships reported as being delivered in the quarter, 29 were MRs of 49,000 dwt and above and 8 were Handysizes. The overall chemical-capable fleet decreased by 8 ships (0.9%) and by 0.16 million dwt (0.2%) in the second quarter 2015. Meanwhile, the number of ships trading chemicals and vegetable oils decreased by a further 35 ships (1.4%) and by 1.2 million dwt (3.1%). Moreover, the increase in the fleet trading (CPP) was 27 ships (1.6%) and 1.0 million dwt (1.8%).

Larger ships of over 30,000 dwt continued to dominate the fleet, accounting for 37% of all chemical capable vessels and as much as 70% in terms of tonnage. According to Drewry, this trend is expected to continue as more MR and Handysize vessels are delivered with IMO certificates. There are 90 pure chemical tankers above 30,000 dwt on order, with half of the existing fleet expected to reach the age of 20 in the next three years.

The orderbook remains high and ships are already finding it difficult to fix cargoes when coming out of the Far Eastern shipyards.

“But the fleet is flexible and can adjust to changes in demand over the rest of 2015. So, if demand increases significantly in the short term, it will bring ships back into the chemical trades,” said Drewry’s Lead Analyst for Chemical Shipping Hu Qing.

Share this article

Follow World Maritime News

Posted on August 18, 2015 with tags .

In Depth>


<< May 2019 >>
29 30 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

GreenTech in Shipping USA Forum 2019

GreenTech in Shipping USA Forum is an event for Maritime leaders who want to unlock successful business formula of the industry!

read more >

CWC World Gas & Power Series – Brazil & the Americas Summit

CWC World Gas & Power Series: Brazil & the Americas Summit is the perfect meeting place to make contacts…

read more >

FPSO Brazil Congress 2019

Charging ahead with 24 planned orders by 2022, Brazil has once again solidified its status as one of the world’s foremost oil and gas leaders…

read more >

Nor-Shipping 2019

Nor-Shipping’s conference and event programme is tailored to deliver the knowledge, value and networking to help you build your business.

read more >